ASIC warns of scam impersonations

ASIC has discovered scammers targeting overseas residents pretending to be Australian financial services (AFS) licensees.

A similar warning was issued a year ago after the corporate regulator was informed that consumers were being targeted by scammers impersonating ASIC employees.

In a statement last week, the regulator underlined that it would never provide a guarantee for bonds or other financial products, despite scammers making it appear otherwise.

As such, ASIC urged investors to recognise that any documents with ASIC’s logo that claim relevant investments will be guaranteed are fake, with the regulator confirming it does not authorise its logo to be attached to investment materials.

Moreover, the regulator advised investors not to engage with offers made through unsolicited telephone calls, emails or other means such as social media contact, even for an investment offer claiming to be guaranteed by ASIC.

For investors who believe they have been scammed, ASIC instructed them not to send any more money and, additionally, to be wary of secondary scams or money recovery services that may offer to help them get their money back for a fee.

According to Scamwatch, Australians had lost upwards of $381 million by August; of those losses, 70 per cent were reported to be investment-related.

Investment scams were identified as one of the most damaging among those in circulation, as reported losses in 2022 totalled $267 million as of 31 August.

During scam awareness week in November, SMSF Association’s chief executive officer, John Maroney, warned: “As these investment scams continue to grow and become more sophisticated, they present a very real risk to our sector.”

He added: “Our role is to raise awareness, encourage conversations and promote vigilance to safeguard SMSFs from this activity.”